Jumbo: 10% down on a $1 Million Home Price?

[youdontkillmoney]

Revelate

Thanks for info, Chase is running some est for me as we speak...I will update when I get data point

[youdontkillmoney]

OneWest bank in Pasadena said they only offer 20% down on Jumbo loans; they used ot have a 10% down w/ no PMI on jumbos but no any longer

[Revelate]

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@youdontkillmoney wrote:

OneWest bank in Pasadena said they only offer 20% down on Jumbo loans; they used ot have a 10% down w/ no PMI on jumbos but no any longer

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Oh that's interesting, I wonder what spooked some of the lenders?  Yeah Penfed was running 10% at the time.

Did look like on your WF rate they were a bit higher than before too, I was at 3.875% 0 points at a 720 FICO; though I wasn't in a 10% down product, the rates were flat in their lower downpayment tiers when I looked at the rate sheet.  Most of the jumbo big banks should be within like .125% of each other.

[Revelate]

Since I was curious this was Logix's estimate on 10% down 1M no points and gold-plated status (couldn't get the Chase one online for what you were looking for):

Loan Amount:                   $900,000.00 Purchase Price:                   $1,000,000.00 Loan Program:                   90% 30 Yr Low Down Payment Jumbo Interest Rate:                   3.875% LTV: 90.000%         APR: 4.264%

Summary of Charges Discount Points $0.00 0.000%       Credit Report Fee $18.00 Recording Fee $175.00 Title - Escrow/Attorney Fees $2,200.00 Flood Certification Fee $6.00 Tax Registration Fee $59.00 Document Preparation Fee $30.00 Processing Fee $195.00 Underwriting Fee $500.00 Title - Messenger Fee $100.00 Appraisal Fee $950.00 Title - Notary Fee $175.00 Title - Lenders Title Insurance $1,017.00 Title - Owners Title Insurance (optional) $2,380.00 Application Fee $500.00 Title - Closing Protection Letter Fee $25.00 Title - Recording Service Fee $13.00 Summary of Charges: $8,343.00

[youdontkillmoney]

Revelate

Thanks for Logix quote, seems in line with Wells....I don't have the appetite to open a 3rd credit union account so I will skip Logix....US Bank offers 10% down on 1M too, they also offered a 1st mortgage at $800K and $100K at line of credit (2nd mortgage)...I 'll post details soon (US bank was only bank that offered me the 1st and 2nd mortgage product)

[youdontkillmoney]

This is what US Bank emailed me (plus they attached a Pre-approval letter w/o actually running my credit report, seeing my pay stubs, tax returns, etc; he went by the financial information I emailed him which I what I typed out in the first post above and I thought they were "conservative" lenders):

LOAN OPTIONS 1:

Loan Program: 30 Yr Fixed 80/10/10 (THIS IS THE 80% which will be the 1st Mortgage)
Loan Amount: $800,000
Rate: 3.625%
Payment: $3648.41
Credit from US BANK: $2000
Credit for the Platinum Checking and Savings Accounts: $1000
Total Credit from US BANK: $3000 (this will go towards cost of the loan)


Loan Program: HELOC (this is the 10% to the loan option above)
Loan Amount: $100,000
Rate: 4.50%
Payment: $375.00
Total Cost: $0.00 (NO COST ON THE HELOC)

LOAN OPTIONS 2:

Loan Program: 30 Yr Fixed LPMI (THIS IS THE 90% which will be the 1st Mortgage; No Private Mortgage Insurance)
Loan Amount: $900,000
Rate: 4.375%
Payment: $4493.57 (you will need to add the following to the payment Taxes: $1041.67 & Insurance $100.00 Total Payment: $5,635.24)  
Credit from US BANK: $2250
Credit for the Platinum Checking and Savings Accounts: $1000
Total Credit from US BANK: $3250 (this will go towards cost of the loan)

Items Needed:

• W-2's for 2014 & 2015 (for both you and your wife)
• Two most recent pay stubs (for both you and your wife)
• Two month bank statement & retirement accounts (all pages are required; if its 1 of 10 pages I will need all 10 pages)

THIS IS THE PREAPPROVAL LETTER ATTACHED TO THE EMAIL US BANK SENT ME:

(I noticed it is for 2nd mortgage product not the 30-year fixed $1M loan, if I go with US bank I will ask for the 30-yr fixed preapproval letter)

*********

An assessment was performed to determine whether your Income, Credit and Debt Ratio may fit a current U.S. Bank Home Mortgage Loan Program.  Based on the information you provided you are Pre-Approved to borrow the following:

• Loan type and term: 30 Yr Fixed 80/10/10
• Purchase Price: $1,000,000
• Loan Amount: $800,000
• Interest Rate: 3.625%
• Payment: $3648.41

Pre- Approval Contingencies:

• Fully Executed Purchase Contract
• Title and Escrow Instructions
• Quote for Hazard and Fire Insurance
• Appraisal must be Acceptable by US BANK

Compensating Factors for Pre-Approval:

• Superb Mid Fico: 800
• Debt-to-Income Ratios satisfy program guidelines
• Reserves sourced and verified to meet down payment of 10% (liquidity after the down payment is more than sufficient of loan requirements)

• Excellent Employment History
• Consistent Sustainable Income  

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(1) So is a 30-yr fixed $900K loan, $100K down better than the 1st mortgage ($800k) + 2nd mortgage (100K home equity line of credit) product......it seems to me I should avoid this product they are pushing, $800K loan with $100K HELOC as it seems more pricey...anyone have thoughts?

(2) is it worth getting 2 pre approvals in case one falls through in underwriting?

(3) is it possible to pit the lower 3.875% wells APR quote against US Bank 4.375%+ rate to get it lower or is that not recommended for mortgage rate shopping?

[youdontkillmoney]

Here is a link to a viewable matrix that compares the 15 financial institutions I looked into for jumbo loans.

I am still waiting for Chase to get back to me, barring something competitive from Chase, I am leaning towards going with Wells Fargo unless US Bank can be more competitive against Wells.

https://docs.google.com/spreadsheets/d/1UvCPic8ZnVvvByOuz_NPDabmw7av1ME9tQLGhJaWjik/edit?usp=sharing

[Revelate]

You can always ask them to match rates, they may not, but some lenders will compete.  

Payment wise the 80/10/10 looks like a good deal, problem is I can't quite figure out how that HELOC payment isn't closer to $500/month if talking 30 year term at that interest rate but maybe I'm flubbing the napkin math.

[youdontkillmoney]

Thanks Revelate..I have not done the math to compare US Banks piggyback or 80/10/10 product versus wells fargo 30-year fixed jumbo....I should, I will

[Revelate]

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@youdontkillmoney wrote:

Thanks Revelate..I have not done the math to compare US Banks piggyback or 80/10/10 product versus wells fargo 30-year fixed jumbo....I should, I will

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Yeah math FTW, rewrote my post as suddenly I got a little confuzzed on that HELOC payment heh but tired and need more alcohol so math isn't my strong suit at the moment